MEPs vote through transparency law

Plans to force firms listed on European stock markets to publish information on their companies every three months have been backed by the European Parliament.

MEPs approved the law by 390 votes for, 8 against and there were 102 abstentions.

The proposal aims to protect investors by giving them more information about listed companies and is a key directive in the European Commission's Financial Services Action Plan.

Stockmarket listed companies will now have to issue a 'interim management statement' between their half year and full year statements containing any general information which could influence investors such as changes in the makeup of a firm or any debt repayments.

During months of negotiation MEPs and EU capitals rejected the original commission proposal which would have obliged companies to publish their profit and loss every three months.

One of the MEPs in charge of drafting the parliament's text, Theresa Villiers, said,

"This is a significant victory in the battle against unnecessary EU red tape.

"Companies will not be required to file quarterly accounts, which would have been an onerous and expensive burden on business that would not have produced any proportionate benefits to investors."

EU finance ministers now have to formally approve the law before it can come into force, which could be by the end of 2005.

• Previous article
• Next article